While Performing a Substantive Test of Details During an Audit,the

question 44

Multiple Choice

While performing a substantive test of details during an audit,the auditor determined that the sample results supported the conclusion that the recorded account balance was materially misstated.It was,in fact,not materially misstated.This situation illustrates the risk of:

• A)Incorrect acceptance.
• B)Incorrect rejection.
• C)Assessing control risk too high.
• D)Assessing control risk too low.

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Definitions:

Internal Validity

The degree to which a study or experiment accurately establishes a cause-effect relationship without the influence of external factors.

External Validity

The extent to which the results of a study can be generalized to other situations, people, settings, and times.

Experimental Design

The planning of an experiment to ensure that it can test hypotheses effectively and produce valid and reliable results.

Attrition

The loss of participants during the course of a study, which can potentially bias the results.